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New guidelines for bank auditors and examiners.

Improving coordination and communication between bank examiners and external bank auditors is the focus of an interagency policy statement issued by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

Interagency Policy Statement on Coordination and Communication Between External Auditors and Examiners details information that depository institutions should provide to their auditors, as well as meetings that should be held between auditors and examiners in connection with safety and soundness examinations.

The guidelines recommend that when regulatory agencies provide advance notice of examination starting dates, institutions promptly advise their auditors of the dates and scope of the examination. Auditors, in turn, should advise the appropriate regulators regarding auditing work dates on the institution's premises.

Institutions also should provide auditors with copies of certain repons and supervisory documents, including

* Call reports for banks and thrift financial reports for savings institutions.

* The most recent examination report and pertinent correspondence from regulators.

* Reports of any action initiated by a federal banking agency since the beginning of the audit period.

* Reports of any civil money penalties assessed against the institution or an institution-affiliated party since the beginning of the audit period.

Meeting arrangements. Auditors are encouraged to attend examination exit conferences after completing field work. They also should attend meetings between supervisory examiners and an institution's management or board of directors, at which examination findings relevant to the audit's scope are discussed.

Although the policy statement focuses on depository institutions, bank holding companies and U.S. branches and agencies of foreign banks examined by the Federal Reserve are encouraged to follow the guidelines.
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Oct 1, 1992
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